IRS Releases Inflation Adjustments for Valuable Health Benefits

The IRS has released the 2025 inflation-adjusted numbers for health FSAs, qualified small employer HRAs (QSEHRAs), long-term care insurance and other valuable benefits. For 2025, the contribution limit for health FSAs will increase from $3,200 to $3,300. The carryover limit will increase from $640 in 2024 to $660 in 2025. Employees of small employers can benefit from a $6,350 QSEHRA contribution for self-only coverage in 2025 ($12,800 for family coverage). The limits were $6,150 and $12,450 in 2024. The qualified long-term care insurance policy limits increased to $480 for taxpayers 40 and younger, $900 for clients between ages 41 and 50, $1,800 for clients between ages 51 and 60, $4,810 for clients aged 61 to 70 and $6,020 for clients over the age of 70. The per diem rate increased to $420 ($410 in 2024). For more information on the tax rules governing qualified long-term care insurance, visit Tax Facts Online. Read More: Link to Q491.